Dexus (ASX:DXS) ASX release 14 August 2019 2019 Property Synopsis Dexus provides its 2019 Property Synopsis. An excel version of the property synopsis is also available at www.dexus.com For further information please contact: Investor Relations Media Relations Rowena Causley Louise Murray +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 [email protected] [email protected] About Dexus Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion. We believe that the strength and quality of our relationships is central to our success, and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $15.6 billion of office and industrial properties. We manage a further $16.2 billion of office, retail, industrial and healthcare properties for third party clients. The group’s circa $9.3 billion development and concept pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.7 million square metres of office workspace across 53 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 26,000 investors from 19 countries. With 35 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk- adjusted returns for investors. www.dexus.com Download the Dexus IR app Download the Dexus IR app to your preferred mobile device to gain instant access to the latest stock price, ASX Announcements, presentations, reports, webcasts and more. Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) Property Synopsis 2019 Dexus owns and manages high-quality properties located in the key CBDs around Australia. Underpinned by our customer-centric approach, we utilise our asset and property management expertise to optimise building functionality and maintain high occupancy levels. In this report About Dexus 01 Office Portfolio 02 Industrial Portfolio 40 Directory 87 About this report Dexus’s 2019 Property Synopsis forms part of Dexus’s 2019 Annual Reporting Suite available at www.dexus.com/investor-centre which includes: 1. 2019 Annual Report 2. 2019 Financial Statements 3. 2019 Sustainability Performance Pack 4. 2019 Annual Results Presentation All data as at 30 June 2019 unless otherwise stated. www.dexus2019.reportonline.com.au Dexus 2019 Property Synopsis 1 About Dexus Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by more $ than 26,000 investors from 31.8bn 19 countries. Total funds under management With 35 years of expertise in property, investment, development and asset management, we have a proven track record in providing capital and risk management and delivering superior risk-adjusted returns for our investors. 157 We invest only in Australia, and directly own $15.6 billion of office and industrial properties. We manage a further Properties $16.2 billion of office, retail, industrial and healthcare properties for our third party capital partners. The group’s circa $9.3 billion development and concept pipeline provides the opportunity to grow both portfolios and enhance future returns. We consider sustainability to be an integral part of our business with the objectives of leading cities, 4.7m future-enabled customers, strong communities, thriving people and an enriched environment supporting our square metres across the group overarching goal of sustained value. We believe the strength and quality of our relationships will always be central to our success and we are deeply committed to working with our customers to provide spaces that engage and inspire. $14bn Market capitalisation as at June 2019 Top 50 $ Entity on ASX 31.8bn Total Funds Under Management 539 Employees Oce $21.8bn Industrial $4.6bn Retail $5.1bn Healthcare $0.2bn 2 Office Portfolio Office portfolio Dexus is Australia’s preferred office partner investing in and managing office space located across the central business districts of Sydney, Melbourne, Brisbane and Perth. Being the leading owner and manager of Australian office property is one of Dexus’s strategic objectives that underpins its strategy. Leadership in office is an aspiration that is supported by our scale, which in turn supports the generation of investment outperformance through providing valuable customer insights and the opportunity to invest in people, systems and technologies that enhance our customers’ experience. It also enhances our ability to find the ideal workspace solution for customers and generates cost efficiencies. Key metrics FY19 FY18 FY17 FY16 FY15 Portfolio value ($bn) 13.2 11.0 10.2 9. 2 7.8 Total properties 46 46 47 50 49 Net lettable area (sqm) 1,546,264 1,495,238 1,581,646 1,562,997 1,403,255 Like-for-like income growth (%) 3.4 4.5 2.6 1.0 0.2 Occupancy by income (%) 98.0 96.0 97.2 96.3 95.3 Occupancy by area (%) 9 7. 8 95.7 9 7.0 96.3 95.5 Portfolio WALE by income (years) 4.4 4.6 4.8 4.7 4.3 Tenant retention (%) 59 54 46 62 61 Weighted average capitalisation rate (%) 5.15 5.37 5.78 6.16 6.71 1 year total return (%) 10.6 16.9 14.1 16.0 9. 6 $ 13.2bn Portfolio value 46 Office properties Dexus 2019 Property Synopsis 3 Brisbane Perth Sydney Canberra Melbourne Sydney Melbourne Brisbane 28 properties 7 properties 6 properties 836,389sqm 297,418sqm 250,695sqm 54% area 19% area 16% area $8,368m $2,091m $1,651m 65% value 16% value 13% value Perth Canberra 3 properties 2 properties 121,606sqm 40,079sqm 8% area 3% area $693m $102m 5% value 1% value 4 Office Portfolio Geographical Property type weighting by book value by book value Premium Grade 31% NSW 65% A Grade 57% Victoria 16% B Grade 6% Queensland 13% Development other 6% ACT 1% Western Australia 5% Legal services Construction services 11.9% 2.8% Business services Investment banks Other 2.5% 7. 6% Retailing (non-food) Rental & Real 2.3% Estate services 7. 5 % Engineering Consultancy Services Banks and building 2.2% societies Diversity of 6.2% Oil and Gas 2.0% tenants by income State Government 5.9% Healthcare and social assistance Other finance 1.7% 5.5% Other public administration Accounting services 1.2% 5.5% Superannuation Car park services 1.1% 5.5% Employment Placement Federal Government & Recruitment Services 5.1% 1.1% Information media & Electricity, gas, water telecommunications and waste service 4.7% 1.1% Metal ore mining Scientific and Technical Services 4.3% 0.9% Insurance Pharmaceutical wholesaling 2.8% 0.9% Food Retailing Other 2.8% 4.9% Dexus 2019 Property Synopsis 5 “Our office buildings are located where our customers need to be.” 6 Office Portfolio Office lease expiry profile Dexus office portfolio 20% Income Area % 16.4 16.0% 15% % 12.8% 12.9% 13.3 13.1% 12.1% 11.6% 10% 6.9% 6.7% 5% % 2.0% 2.2 0% Available FY20 FY21 FY22 FY23 FY24 Sydney CBD 20% Income Area 17.2% 16.2% 15% % 13.7% 13.8% 14.1 12.7% % 10.9 10.6% 10% 6.8% 6.6% 5% % 1.7 1.3% 0% Available FY20 FY21 FY22 FY23 FY24 Sydney Suburban 30% Income Area 24.5% 23.4% 20% 17.6% 16.7% 11.7% 11.8% 10% 8.7% 6.8% 5.5% % 4.7% 4.5 3.8% 0% Available FY20 FY21 FY22 FY23 FY24 Dexus 2019 Property Synopsis 7 Brisbane CBD 40% Income Area % % 28.8 30% 28.5 20% 14.7% 13.4% 10.4% 10% 6.4% 6.0% 6.2% % 3.2% 3.7 1.8% 1.8% 0% Available FY20 FY21 FY22 FY23 FY24 Melbourne CBD 30% Income Area 25.9% 26.0% 20% % 13.7 13.0% % % % 10% 8.8 % 8.3 8.6 8.0 7. 7 % 3.6% 0.7% 0.7% 0% Available FY20 FY21 FY22 FY23 FY24 Perth CBD 20% Income Area 16.2% 15% 13.0% 10.9% 9.9 % 10% 5.4% % 5% 4.6 1.3% 1.3% % 0.5% 0.4 0.0% 0.0% 0% Available FY20 FY21 FY22 FY23 FY24 8 Office Portfolio Sustainability Dexus has set an ambitious long-term goal and pathway to achieve net zero carbon emissions by 2030 by improving energy efficiency and increasing the adoption of renewable energy sources. We have progressed our 2020 NABERS targets of achieving 1,000,000 square metres of office property at a minimum 5 stars NABERS Energy rating and 4 stars NABERS water rating by 2020. At the end of FY19, we had 950,351 square metres of office space committed to or rated at 5 stars NABERS Energy or higher, and 757,423 square metres of office space rated 4 stars NABERS Water or higher. 46.0% 23.7% 48.6% Energy intensity Water intensity GHG emissions since FY08 since FY08 since FY08 5 star office portfolio average 6 stars 3% 4 stars 6% 5.5 stars 45% 3 stars 0.4% 5 stars 30% 2.5 stars 1.4% 4.5 stars 14% 1 stars 0.2% Dexus 2019 Property Synopsis 9 “Going beyond managing our own emissions, we are focused on bringing our customers on the journey to reduce total building energy consumption.